SHILLONG, March 16 - Concerned over low Credit-Deposit ratio of nationalised banks in the State, Meghalaya Chief Minister Mukul Sangma today said his government will soon pass a State legislation to ensure they improve.
The Chief Minister said the government is set to adopt a multi-pronged approach with an aim to improve the CD ratio of the nationalised banks.
Informing that the SBI was the lead bank for the State and that over Rs 870 crore of government�s money was parked with them, Sangma said the CD ratio for the said bank remained as low as 30.3 per cent only in 2012-13.
�The figures remain discouraging. We will soon come with a State specific legislation to enable promotion of micro finance institutions across the State,� he told the Assembly during Question Hour today.
�From experience we have learnt there is also a slow response to increase their (banks) outreach in respect of credit flow or expand branches,� he said.
Admitting that there was a need to encourage entrepreneur to link their enterprises, the Chief Minister said �Aggressive financial literacy programme is needed to sensitise our people to take benefit of the credit. We will move with multi-pronged approach to improve CD ratio.�
Stating that the issue of low CD ratio was not new in the State and it remained a concern, Mukul said a number of initiatives and interventions have been taken up ensuring more branches were opened across the State to give access to the people.
He said various entrepreneurial programmes of the government have been taken up and the government was also working on finding out how many people needed financial inclusion.
Earlier, Leader of Opposition Donkupar Roy stated low CD ratio implies people were only saving and whatever they invested in banks was getting drained out of the State.
He said the CD ratio was high in other States and demanded the government to come up with �specific policy� to prevent the banks from refusing to provide credit to genuine entrepreneurs.
United Democratic Party legislator Paul Lyngdoh demanded the government tighten the noose on SBI with the condition that the CD ratio should improve to make it incumbent upon the government to park its funds with them. � PTI